In the past few years, seldom is it ever the situation that airfares are decreasing. Fees and increased costs of fuel make traveling a more expensive proposition every year. A new round of airfares increasing has just been reported, as the airlines are at least consistent.
Another round of price increasing
According to CBS, United Airlines recently elevated the base rate for airfares, adding $4 to $10, depending on the route, according to recent info from FareCompare.com. Airfare increasing is the rule instead of the exception these days, and many other major carriers followed suit. JetBlue, Virgin and Southwest Air carriers quickly elevated their base charges soon after, according to USA Today. Joining them were Delta, American Airlines and US Airways, according to CBS.
This is the fourth time this year that airfare has increased. It is only the fourth time it has been successful though airlines have tried to increase charges seven times this year.
Increase not too bad
When added up over the year, $4 and $10 ends up being a great deal bigger than you may think. Fares increased nine times last year.
However, the news isn't all bad. Some air carriers are only raising charges on longer routes, as Southwest is excluding flights under 500 miles. Not everybody is going to feel the pinch though, as late August is generally when the sluggish season for air travel begins. Fewer people fly during fall and as a result, airlines usually cut back. Airlines typically cut prices by 10 to 20 percent during the slow season, which might save some travelers some cash.
Occasionally, a fee is added to the trip that you were not expecting, according to the Los Angeles Times, such as airline fuel surcharges. Since April 2011, surcharges have increased 53 percent in spite of the truth that fuel has only increased by 24 percent, according to a study by Cason Wagonlit Travel that showed just how much fuel surcharges are increasing.
However, Airlines for America, the trade group for key air companies in the United States, notes fuel prices are roughly $3.05 per gallon, compared to $3.00 per gallon in 2010.
Slight amount of income
Fuel surcharges, along with any ancillary fee, now have to be revealed under new federal guidelines for airline ticket prices. How much airlines actually make per each fare is surprisingly less than one might think. One can find numerous reports on airlines reaping billions in earnings, specifically from ancillary charges like baggage charges, but the outlays carriers have to spend to get there can be incredible. Also, as the Huffington Post points out, airline charges are currently on the drop.
For instance, according to a 2010 CNN article, a one-way flight from Los Angeles to New York cost $506.62, on average, at the time of that article's writing. Of that $506.62, just $33.34 was profit, roughly 6.6 percent. Almost $200 of that goes to labor and fuel, fuel accounting for the largest portion, at $97.85. A 10 percent increase in fuel costs boosts those costs to $23.67, a margin of roughly 4.8 percent. Prices can be high, but that's the cost of being able to fly the friendly skies.
Another round of price increasing
According to CBS, United Airlines recently elevated the base rate for airfares, adding $4 to $10, depending on the route, according to recent info from FareCompare.com. Airfare increasing is the rule instead of the exception these days, and many other major carriers followed suit. JetBlue, Virgin and Southwest Air carriers quickly elevated their base charges soon after, according to USA Today. Joining them were Delta, American Airlines and US Airways, according to CBS.
This is the fourth time this year that airfare has increased. It is only the fourth time it has been successful though airlines have tried to increase charges seven times this year.
Increase not too bad
When added up over the year, $4 and $10 ends up being a great deal bigger than you may think. Fares increased nine times last year.
However, the news isn't all bad. Some air carriers are only raising charges on longer routes, as Southwest is excluding flights under 500 miles. Not everybody is going to feel the pinch though, as late August is generally when the sluggish season for air travel begins. Fewer people fly during fall and as a result, airlines usually cut back. Airlines typically cut prices by 10 to 20 percent during the slow season, which might save some travelers some cash.
Occasionally, a fee is added to the trip that you were not expecting, according to the Los Angeles Times, such as airline fuel surcharges. Since April 2011, surcharges have increased 53 percent in spite of the truth that fuel has only increased by 24 percent, according to a study by Cason Wagonlit Travel that showed just how much fuel surcharges are increasing.
However, Airlines for America, the trade group for key air companies in the United States, notes fuel prices are roughly $3.05 per gallon, compared to $3.00 per gallon in 2010.
Slight amount of income
Fuel surcharges, along with any ancillary fee, now have to be revealed under new federal guidelines for airline ticket prices. How much airlines actually make per each fare is surprisingly less than one might think. One can find numerous reports on airlines reaping billions in earnings, specifically from ancillary charges like baggage charges, but the outlays carriers have to spend to get there can be incredible. Also, as the Huffington Post points out, airline charges are currently on the drop.
For instance, according to a 2010 CNN article, a one-way flight from Los Angeles to New York cost $506.62, on average, at the time of that article's writing. Of that $506.62, just $33.34 was profit, roughly 6.6 percent. Almost $200 of that goes to labor and fuel, fuel accounting for the largest portion, at $97.85. A 10 percent increase in fuel costs boosts those costs to $23.67, a margin of roughly 4.8 percent. Prices can be high, but that's the cost of being able to fly the friendly skies.